System and method for performing lottery ticket transactions utilizing point-of-sale terminals

ABSTRACT

A system and method for performing integrated lottery ticket and merchandise transactions using a point-of-sale terminal that generates a single sales receipt containing all pertinent lottery ticket and merchandise transaction information. The lottery tickets generated include fractional value and “quick-pick” lottery tickets. A group of point-of-sale terminals are connected to a POS controller which communicates with a lottery data processing system. An encrypted authentication code also printed on the sales receipt allows the lottery player to verify all lottery ticket transaction information, as needed.

BACKGROUND OF THE INVENTION

[0001] This invention relates to a lottery ticket transaction system.More particularly, the present invention relates to a system and amethod for selling lottery tickets using point-of-sale (“POS”) terminalsthat generate sales receipts containing both merchandise salesinformation and lottery ticket information.

[0002] Many states in the United States, as well as some foreigncountries, have government-conducted lottery systems.Government-conducted lotteries offer the public a desirable product(usually the chance to win a large cash prize), and have the benefit ofincreasing governmental revenues without burdening the public withadditional or increased taxes. In many instances, the revenue generatedfrom a governmental lottery is dedicated to a particular purpose orgoal, such as improving the education system or reducing property taxes.

[0003] In a typical government-conducted lottery system, a centrallottery computer is used to communicate with dedicated lotteryterminals. A player selects numbers on a lottery playslip, and thelottery terminal operator inserts the lottery playslip into a reader atthe lottery terminal, which optically reads the lottery playslip using aknown mark-sense process. The dedicated lottery terminal thencommunicates the player's selected numbers to a central lottery computerwhich in turn stores them. After the lottery numbers have been stored,the dedicated lottery terminal, under the control of the central lotterycomputer, prints and issues the lottery ticket.

[0004] One popular lottery game, known as “lotto, ” typically requiresthe player to choose six numbers from one to forty-two. The selectedgroup of numbers are then compared to the winning lottery numbers, whichhave been randomly selected from the larger pool of numbers, from one toforty-two, at some specified time and date after purchase of the lottoticket, usually once or twice each week. To win a prize, the lottoticket numbers must be equal to all or some of the winning lotterynumbers.

[0005] While players may select their own lottery numbers, most lottogames provide the option of having the central lottery computer systemselect random “quick-pick” lottery numbers instead This saves thepurchaser the time and inconvenience of picking his or her own numbers.These automatic lottery number generation systems are usually known as“quick-pick” systems.

[0006] A variety of games may be played in a typical lottery. Inconventional lottery games, a player purchases a lottery ticket.Inscribed on that lottery ticket are one or more lottery numbers and aserial number. The serial number functions as a simple method of fraudprevention, because it uniquely identifies each lottery ticket sold. Thelottery number also allows both the player and the lottery system toidentify a winner; specifically, the lottery numbers are compared by theplayer to a “winning number list”, to determine if the player has won aprize.

[0007] There are also instant lottery games in which the outcome isdetermined prior to the sale of the lottery ticket. By uncoveringconcealed indicia inscribed on the lottery ticket, the player candetermine if the lottery ticket is a winner—immediately after purchase.

[0008] Some foreign countries (e.g. Germany) allow a lottery player topurchase fractional lottery tickets. However, these lottery systems onlyallow the player to purchase fixed fractions of certain high-pricedlottery tickets (e.g., a half, or quarter share of a lottery ticket). Inthese instances, if the lottery ticket is a winner, the purchaser willonly receive one-half or one-quarter of the full prize amount.

[0009] The majority of lottery tickets are sold by grocery, liquor andconvenience stores. These retail stores typically place the dedicatedlottery terminal away from one or more POS terminals used formerchandise transactions. This physical separation is to ensure that themerchandise transaction line is not slowed-down or blocked by customerswishing to make lottery ticket purchases. In addition, since the lotteryterminals have a separate and distinct accounting system, there is noneed to co-locate the POS terminals and dedicated lottery terminals.

[0010] However, some customers may consider it annoying to make twoseparate transactions, i.e., merchandise and lottery tickets, on twodifferent terminals within the same store. Separate terminals may alsoforce the customers to wait in two separate lines, or may slow down theoverall merchandise check-out procedure while a single store clerkperforms two separate transactions on two terminals. Besides annoyingthe merchandise-only customers, these inconveniences also reduce theimpulse purchasing of lottery tickets, which in turn leads to loss ofrevenue for the government and the store.

[0011] There are other disadvantages with using two separate anddistinct terminals for merchandise transactions and lottery tickettransactions. The government usually bears the costs of purchasing,leasing, installing and maintaining the dedicated lottery terminals.There are also the considerable costs of resupplying the lottery ticketpaper and ink for each dedicated lottery terminal. Moreover, many retailstores with multiple checkout lines and registers, such as supermarkets,do not have the resources to support dedicated lottery terminals atevery check-out register. In addition, a dedicated lottery terminal usescounter space that could otherwise be devoted to revenue-producingmerchandise displays. It is also costly to train store personnel in theoperation of two distinct types of transaction terminals. These factorsreduce the availability of lottery tickets to consumers, and thus reducegovernmental revenue, by limiting the number of locations that selllottery tickets.

[0012] After many years of steadily increasing profits, many state-runlotteries have seen a downturn in profits. Improving the ease ofpurchasing lottery tickets and increasing their availability has becomea primary concern as many states are modernizing their lottery systems.The current lottery system does not allow for the sale of fractionalvalue lottery tickets at retail point of sale terminals. There is asignificant loss of revenue from this lost opportunity to buy fractionalvalue lottery tickets. Accordingly, there is a need for a system thatsolves the above described problems.

SUMMARY OF THE INVENTION

[0013] The present invention solves the foregoing problems by providinga system and a method for performing integrated lottery ticket andmerchandise transactions. The system and method utilizes POS terminalsthat generate a single sales receipt containing all lottery ticket andmerchandise information.

[0014] In accordance with one embodiment of the present invention, eachPOS terminal is connected to a POS controller, which in turn is adaptedto communicate with a lottery data processing system. The POS terminalis designed to perform lottery transactions in addition to merchandisetransactions. Accordingly, during the course of purchasing merchandise,the buyer can also request the purchase of a lottery ticket. The POSterminal operator thereupon actuates a pre-programmed key or other codedinput on the POS terminal, which causes the terminal to transmit alottery ticket request to the POS controller. The controller transmitsthis request to the lottery data processing system, which carries outthe lottery transaction. The lottery data processing system thentransmits lottery ticket information back to the POS terminal. The POSterminal completes the transaction by printing out a single salesreceipt containing both lottery ticket information and informationconcerning the merchandise being purchased.

[0015] The present invention advantageously eliminates the need for aseparate lottery ticket system and terminal which in turn eliminates theadded costs of the check-out counter space associated therewith. Thisprovides the lottery ticket purchaser with a convenient and efficientmeans of buying lottery tickets while making non-lottery ticketpurchases at the POS terminal. The present invention also advantageouslyprovides the consumer greater access to lottery tickets by increasingthe number of locations capable of selling lottery tickets.

[0016] In accordance with another embodiment of the present invention,lottery players may purchase fractional lottery tickets at the POSterminal. Any fraction or percentage of a full lottery ticket can berequested by the customer (i.e. one to ninety-nine percent). Thecustomer is not limited to any preset or fixed fractions. This isadvantageous for customers who are making other merchandise transactionsand who do not wish to receive change (coins totalling less than adollar). Instead of receiving a handful of change, the customer canrequest his change be used for purchasing a fractional lottery ticket.In this embodiment, the lottery player would only receive a fraction ofa winning prize based on the fraction of the lottery ticket purchased.In accordance with another embodiment of the present invention, lotteryplayers may telephone the lottery data processing system via aninteractive voice response unit (IVRU) to verify the validity of thelottery ticket information. The player inputs to the IVRU via thetelephone keypad the encrypted authentication code printed on the salesreceipt, and this code is decrypted by the lottery data processingsystem and used to verify the lottery ticket.

BRIEF DESCRIPTION OF THE DRAWINGS

[0017]FIG. 1 is a block diagram of a system in accordance with thepresent invention.

[0018]FIG. 2 is a block diagram of the POS controller of FIG. 1.

[0019]FIG. 3 is a block diagram of the POS terminal of FIG. 1.

[0020]FIG. 4 is a block diagram of the lottery data processing system.

[0021]FIG. 5 is a table depicting the local lottery ticket databasewithin the POS controller of FIG. 3.

[0022]FIG. 6 is a table depicting the lottery ticket database within thelottery data processing system of FIG. 4.

[0023]FIG. 7 is a table depicting the POS controller database within thelottery data processing system of FIG. 4.

[0024]FIG. 8 is a flow chart depicting the lottery transaction at thePOS terminal.

[0025]FIG. 9 is an example of a store sales receipt in accordance withthe preferred embodiment of the present invention.

[0026]FIG. 10 is a flow chart of the operation of the POS controller.

[0027]FIG. 11 is a flow chart of the operation of the lottery dataprocessing system.

[0028]FIG. 12 is a flow chart depicting the telephone authenticationprocess.

DETAILED DESCRIPTION OF THE PREFERRED EMBODIMENTS

[0029] The present invention is directed to a system for performinglottery ticket transactions at retail POS terminals without the customerhaving to wait for two transaction receipts, or go to another check-outterminal to make other non-lottery ticket purchases. In about the sameamount of time it takes to ring up bread or milk at a POS terminal, thecustomer can also purchase a “quick-pick” lottery ticket. This one-stopshopping facilitates the sale of lottery tickets, and speeds thecustomer on his way. In addition, the present invention enables thecustomer to purchase fractional lottery tickets which even furtherfacilitates the sale of lottery tickets. In particular, in cases where acustomer makes other merchandise purchases, instead of receiving change,he can request a fractional lottery ticket (equal to the change amount).Accordingly, the present invention provides a consumer with a convenientand efficient system to purchase lottery tickets.

[0030] The term “quick-pick” refers to a lottery ticket in which thelottery numbers are randomly generated for the customer by the lotterysystem.

[0031] A fractional lottery ticket is a lottery ticket in which thecustomer will receive only a portion of the winning prize in accordancewith the fractional portion paid for the ticket as compared to the fullprice of a lottery ticket. For example, if a customer pays 58 cents fora fractional lottery ticket where the full price of a lottery ticket isa dollar, the customer would receive fifty-eight percent of the prizeamount if the ticket is a winner. As used herein, the term “lotterytickets”, or equivalents thereof includes fractional lottery tickets.

[0032]FIG. 1 shows an overall system block diagram of a preferredembodiment of the present invention. In this embodiment, a POScontroller 20 is linked to at least one POS terminal 30 via a POSnetwork 40. Four POS terminals 30 are depicted in FIG. 1, but any numberof POS terminals 30 can be used. The POS network 40 does not have to bea hard wired network, it can include any of a wide variety of meanssuitable to transmit and receive data communications, as describedbelow. A lottery ticket transaction can be initiated from any one of thePOS terminals 30. The information required to initiate a lottery tickettransaction is passed between the POS terminal 30 and the POS controller20 via the POS network 40. It is understood that other types ofinformation can also be passed between the POS terminal 30 and the POScontroller 20. For example, merchandise prices, coupon discounts, andsales event information can also be passed between the POS terminal 30and the POS controller 20.

[0033] As illustrated in FIG. 1, the POS controller 20 is also linked toa lottery data processing system 60, discussed in detail below, via adata network 50. The data network 50 can be any one or more of a varietyof networks capable of data communications. For example, the datanetwork 50 can be a public switched telephone network 76 (PSTN), anintegrated service digital network (ISDN), a packet switched network, aprivate data communication network, a wireless network or any othersuitable network.

[0034] The POS terminals 30 and the POS controller 20 depicted in FIG. 1may be embodied in hardware specifically provided to implement thepresent invention. Alternatively, they may be implemented using existingcash registers and central in-store servers. In particular, many retailstores have computerized cash registers which are coupled to an in-storetransaction processor to receive and transmit merchandise price andother merchandise information. The hardware of these systems may be usedfor the present invention. To incorporate the present invention changesto the existing in-store transaction processor or store network servermay be accomplished in various ways, such as reprogramming the existingin-store transaction processor or by adding an additional file server.

[0035]FIG. 2 is a block diagram of the POS controller 20. The POScontroller 20 includes a CPU 21 which performs the processing functions.POS controller 20 also includes a read only memory 22 (ROM) and a randomaccess memory 23 (RAM). The ROM 22 is used to store at least some of theprogram instructions that are to be executed by the CPU 21, such asportions of the operating system or basic input-output system (BIOS),and the RAM 23 is used for temporary storage of data. A clock circuit 24provides a clock signal which is required by the CPU 21.

[0036] The POS controller 20 also includes a communication port 25connected to a data network interface 71 and a POS network interface 72.The communication port 25 enables the CPU 21 to communicate with devicesexternal to the POS controller 20. In particular, the communication port25 permits communication with the POS terminals 30 and also with thelottery data processing system 60. While a modem (not shown) and adedicated telephone line for establishing communication with the lotterydata processing system 60 is preferred, other data network interfaces,including an ISDN terminal to interface with an ISDN network, a radiocommunications interface, and an Internet interface, may be used aswell.

[0037] The CPU 21 can also store information to, and read informationfrom, a data storage device 26. The data storage device 26 includes alocal lottery ticket database 26 a and other databases including a localsales database 26 b that a store may conventionally maintain. The locallottery ticket database 26 a is described below. In addition, the datastorage device 26 includes instructions which can be read by andexecuted by the CPU 21, thereby enabling the CPU 21 to processtransactions. While FIG. 2 depicts separate databases, a single databasethat incorporates both functions can also be used. Additional databasesmay be added as needed to store a variety of other information that maybe required for other purposes.

[0038]FIG. 5 is a pictorial representation depicting the preferredlayout and the information stored in the local lottery ticket database26 a. The local lottery ticket database 26 a includes a date field F1, asales receipt number field F2, a number of tickets purchased field F3, asale amount field F4, and a lottery ticket number field F5. In the caseof a fractional lottery ticket, the sale amount field F4 would containthe fractional amount of the lottery ticket purchased by the customer(e.g., sixty-eight cents).

[0039] While only three records R1 for three lottery ticket transactionsare depicted in FIG. 5, any number of records may be stored. To conservestorage space on the data storage device 26, records may be transferredto a different storage device or deleted after some predetermined timeinterval or after a predetermined event (e.g. after the winning lotterynumber drawing).

[0040]FIG. 3 is a block diagram of the preferred POS terminal 30, whichcan be located at a supermarket, grocery store, liquor store or anyother location where consumer transactions are performed. As previouslydiscussed above, there can be any number of POS terminals 30 linked toone POS controller 20. The POS terminal 30 includes a CPU 31, ROM 32,RAM 33, clock circuit 34, communication port 35 and a data storagedevice 36. The communication port 35 interfaces with the POS network 40which facilitates communication between the POS terminal 30 and the POScontroller 20.

[0041] The POS terminal 30 includes an input device 37 to receive inputfrom an operator. Any one of a variety of input devices would besuitable for this purpose, including, for example, depression-actuatedbuttons, keys, membranes, a mouse, touchscreens, bar code scanners, andthe like. The input device 37 may interface directly with the CPU 31, asshown in FIG. 3. Alternatively, an appropriate interface circuit may beplaced between the CPU 31 and the input device 37.

[0042] The POS terminal 30 also includes a display device 38 forconveying information to the operator, customer or both. Any one or avariety of display devices would be suitable for this purpose,including, for example a CRT, LCD, LED or thin film transistor panel.

[0043] The POS terminal 30 also includes a data storage device 36, inwhich transaction processor instructions are stored. These instructionscan be read by and executed by the CPU 31, enabling the POS terminal 30to process a variety of transaction types. By way of example, thesetransaction types may include “quick-pick” lottery tickets, lotterytickets other than “quick-pick” tickets and merchandise transactions.

[0044] The POS terminal 30 further includes a printer 39 for recordingthe transaction performed by the POS terminal 30. The printer 39 mayinterface directly with the CPU 31, as shown in FIG. 3. Alternatively,an appropriate interface circuit may be placed between the CPU 31 andthe printer 39.

[0045] It will also be understood that other combinations of POScontrollers 20 and POS terminals 30 could be employed, depending uponthe requirements of a particular establishment. In particular, the POSterminal 30 may incorporate some of features of the POS controller 20 sothat the integrated POS terminal/controller can function as astand-alone unit. This type of terminal would be advantageous forestablishments that only require a single POS terminal.

[0046] Shown in FIG. 4 is a block diagram of the lottery data processingsystem 60. Like the POS controller 20 described above, the lottery dataprocessing system 60 includes a CPU 61, ROM 62, RAM 63, a clock circuit64, and a communication port 65. The communication port 65 is connectedto the data network interface 71. The data network interface 71 depictedis equivalent to the data network interface in FIG. 2. One POScontroller 20 is depicted in FIG. 1, but any number of POS controllers20 can be linked to the lottery data processing system 60 via the datanetwork 50 and the data network interface 71.

[0047] As shown in FIG. 4, the communication port 65 is also connectedto an IVRU interface 74. A customer assistance IVRU 75, as shown in FIG.1, is linked to the lottery data processing system 60 via the IVRUinterface 74. The customer assistance IVRU 75 is also connected to thePSTN 76, the public switched telephone network. The customer assistanceIVRU 75 allows a caller (not shown) to communicate with the lottery dataprocessing system 60 using a telephone (not shown) Voice command promptsguide the caller through various menu options allowing the caller toinput and extract data related to a particular lottery tickettransaction. This process is described in greater detail below.

[0048] The CPU 61 can also store information to, and read informationfrom the data storage device 68. The data storage device 68 includes alottery ticket database 68 a, a POS controller database 68 b, and awinning lottery ticket number database 68 c which are described below.In addition, the data storage device 68 includes instructions which canbe read by and executed by the CPU 61, thereby enabling the CPU 61 toprocess lottery transactions. While FIG. 4 depicts separate databases, asingle database that incorporates all the functions of databases 68 a,68 b and 68 c can also be used. Additional databases may be added asneeded to store a variety of other information that may be useful inmaintaining and administrating a lottery system.

[0049] The lottery data processing system 60 also includes a randomnumber generator 66 and a cryptographic processor 67. When requested bythe CPU 61, the random number generator 66 generates the random“quick-pick” numbers used for “quick-pick” lottery ticket transactions.The cryptographic processor 67 is used to encrypt an authentication codegenerated by the CPU 61, described in greater detail below. Thisencrypted authentication code is passed to the CPU 61 which associatesit with a particular lottery transaction. The cryptographic processor 67is also used to decrypt encrypted authentication codes which are passedto it by the CPU 61.

[0050] While the illustrated embodiment depicts the random numbergenerator 66 and the cryptographic processor 67 as separate elementswithin the lottery data processing system 60, it should be understoodthat other methods of performing their functions may be used. Forexample, these functions may be implemented in a computer program storedin the data storage device 68 and executed by the CPU 61.

[0051]FIG. 6 is a pictorial representation of the information stored inthe lottery ticket database 68 a. The lottery ticket database 68 aincludes a POS controller ID number field F6, a date field F7, a numberof tickets purchased field F8, a sales receipt number field F9, a saleamount field F10, a lottery ticket numbers field F11, and acryptographic code field F12. In the case of a fractional lotteryticket, the sale amount field F10 would contain the fractional amount ofthe lottery ticket purchased by the customer (e.g., sixty-eight cents).The POS controller ID number field F6 is a unique code corresponding toeach POS controller 20 that communicates with the lottery dataprocessing system 60. The sales receipt number field F9 stores a serialnumber related to each receipt generated by the POS terminals 30. Thecryptographic code field F12 stores the encrypted authentication code,as discussed in detail below.

[0052] While record R2 for one POS controller with ID number 23456 isdepicted in FIG. 6, any number of records may be stored. As is also thecase with the data storage device 26, from time to time records may betransferred to a different storage device or deleted to conserve storagespace within the data storage device 68. The winning lottery ticketnumber database 68 c is of the other databases that the lottery dataprocessing system conventionally maintains.

[0053]FIG. 7 is a pictorial representation depicting the informationstored in the POS controller database 68 b. The POS controller database68 b includes a POS controller ID number field F13, a POS controllername field F14, a POS controller location field F15, and a telephonenumber field F16. The POS controller name field F14 stores the name ofthe store or establishment where the POS controller 20 is located. ThePOS controller location field F15 stores the address of where the POScontroller 20 is located. The telephone number field F16 stores thetelephone number associated with each POS controller 20. A record R3 forone POS controller location is depicted in FIG. 7, but any number ofrecords may be stored.

[0054] It should be understood that some fields within the databasesdiscussed above would contain the same corresponding information (e.g.POS controller ID number field F6 in the lottery ticket database 68Acorresponds to field F13 in the POS controller database 68B).

[0055]FIG. 8 is a flow chart depicting an exemplary lottery tickettransaction process performed at the POS terminal 30 from the customer'spoint of view. The process starts when a customer indicates to the POSterminal operator that he or she wishes to purchase one or more“quick-pick” lottery tickets in step S1. Of course, the “quick-pick”lottery tickets can be either full or fractional lottery tickets. Thecustomer may make this decision to buy lottery tickets as a stand-alonetransaction or while purchasing other merchandise, such as milk orbread. In step S2, the POS terminal operator initiates a lotterytransaction by actuating a pre-programmed designation on the inputdevice 37 associated with the POS terminal 30. The customer is thenprompted by the POS operator for the number of “quick-pick” lotterytickets desired in step S3.

[0056] The number of “quick-pick” lottery tickets may also includefractional lottery tickets. This is convenient for customers who do notwant to receive a handful of coins as change from a transaction. Forexample, a customer due sixty-eight cents in change, from a merchandisepurchase could elect to buy a lottery ticket for sixty-eight cents whichis worth 68% of a $1 ticket and which pays-out sixty-eight percent ofthe $1 payout. Alternatively, the customer could buy a 34% value of a $2ticket with 68 cents. Along with the fractional value lottery tickets,the customer may or course purchase full value lottery tickets.

[0057] In an alternative embodiment, the customer may also be promptedfor additional lottery ticket information, such as the type of lotterygame to be played and the particular lottery numbers selected by thecustomer. For example, a particular lottery system may offer lotterygames based on three, four and six number combinations. The customer mayalso personally select the lottery numbers to be played.

[0058] In step S4, the POS terminal operator enters the number oflottery tickets requested by the customer into the POS terminal 30 viathe input device 37. The customer pays for the lottery tickets and anyother purchases made at this time in step S5. In step S6, the POSterminal prints a single receipt containing the lottery ticketinformation and any other merchandise sales information.

[0059] Shown in FIG. 9 is an example of a store sales receipt 80according to the one embodiment of the present invention. The storesales receipt 80 includes non-lottery ticket related merchandiseinformation 81. The bottom portion contains lottery ticket informationincluding a plurality of lottery numbers 82, a store ID number 83, areceipt number 84, a date 85, a time 86, a price 89, a lottery telephonenumber 87, and an encrypted authentication code 88. In the case of afractional lottery ticket, the store sales receipt 80 would also includean indication of the fraction of the full price lottery ticket purchased(e.g., as shown in FIG. 9, $0.68 was paid for ticket 4).

[0060]FIG. 10 is a flow chart of an exemplary operation of the POScontroller 20. The steps of the process shown in FIG. 10 may beimplemented in a computer program that may be installed at the POScontroller 20 from a computer readable medium and then stored therein inone or more of the ROM 22, the RAM 23 and the data storage device 26(shown in FIG. 2). The POS controller 20 receives in step S7 a lotteryticket transaction request which includes, in this example, the numberof “quick-pick” lottery tickets requested by the customer from the POSterminal 30. The POS controller 20 temporarily stores this informationin RAM 23, while it establishes a real-time communication link with thelottery data processing system 60 via the data network 50.

[0061] While one lottery data processing system 60 is depicted in FIG.1, additional lottery data processing systems may be available assecondary or back-up lottery data processing systems. Accordingly, ifthe POS controller 20 fails to establish communication with the primarylottery data processing system, communication attempts would be made toa secondary lottery data processing system.

[0062] Once the real-time communication link is established, the POScontroller 20 in step S8 transmits the number of “quick-pick” lotterytickets requested to the lottery data processing system 60. The POScontroller 20 also transmits its POS controller identification number(e.g. F1 in FIG. 7). In step S9, the POS controller 20 receives one ormore groups of lottery numbers (corresponding to the number of lotterytickets requested) and an associated encrypted authentication code fromthe lottery data processing system 60. A new record (e.g. R1 in FIG. 5)is created in the local lottery ticket database (26 a in FIG. 2) in stepS10. In step S11, the POS controller 20 stores in the newly createdrecord the date, receipt number, time, and lottery numbers received fromthe lottery data processing system (as shown in FIG. 5, F1-F5). The POScontroller 20 then transmits the lottery ticket information (i.e. thelottery numbers and the encrypted authentication code) to the POSterminal 30 that initiated the lottery transaction request in step S12.

[0063] Each of the steps S7-S12 described above is executed by the CPU21 which is executing computer program instructions stored in the datastorage device 26. The communication with the POS terminal 30 takesplace via the communication port 25 and the POS network interface 72.The communication with the lottery data processing system 60 takes placevia the communication port 25 and the data network interface 71.

[0064] In an alternative embodiment, the POS controller 20 may alsohandle non-“quick-pick” lottery ticket transactions. Customer-selectedlottery numbers would be received from the customer via mark-sense slipsor coded chits at the POS terminal 30 and sent to the lottery dataprocessing system 60 for processing, as described below.

[0065]FIG. 11 is a flow chart of the operation of the lottery dataprocessing system 60. The steps of this process may be stored on acomputer readable medium which in this case would be the data storagedevice 68 (shown in FIG. 4). Upon receiving the lottery tickettransaction request and the POS controller identification number fromthe POS controller 20, the lottery data processing system 60 in step S13accesses the POS controller database 68 b (shown in FIGS. 4 and 7). Thelottery data processing system 60 searches the POS controller database68 b and authenticates the POS controller identification number, asshown in step S14. In step S15, the lottery ticket database 68 a (shownin FIGS. 4 and 6) is accessed and a new lottery transaction entry isadded in the appropriate POS controller record (e.g. R2 in FIG. 6).

[0066] In step S16, the lottery data processing system 60 generates oneor more groups of random “quick-pick” lottery numbers using the randomnumber generator 66 (shown in FIG. 4). These random “quick-pick” lotterynumbers are used for the quick-pick lottery tickets. The lotterytransaction entry added in step S15 is then updated in step S16 bystoring these random “quick-pick” lottery numbers in the designatedfield of the record.

[0067] The lottery data processing system 60 also generates anauthentication code based on the variables of the particular lotterytransaction in step S17. This authentication code is a numeric stringincluding all the data of one record in the lottery ticket database 68a. An example of such a code corresponding to the first entry shown inFIG. 6, R2, is as follows:

[0068] 23456/011597004/3343004/011020112131

[0069] In this' example, 23456 represents the POS controller ID number;011597 represents the date; 004 represents the number of ticketspurchased; 3343 represents the sales receipt number; 004 represents thesales amount; and 011020112131 represents the lottery ticket numbers.

[0070] While the use of an encrypted authentication code is thepreferred embodiment, it should also be understood that the store salesreceipt number along with the date for each transaction may be usedinstead. In this situation, the sales receipt number and the date wouldbe used as a pointer to the lottery ticket database 68 a. This pointerwould be used to extract and verify lottery ticket information asrequired.

[0071] In step S18, using the cryptographic processor 67 (shown in FIG.4), the authentication code is encrypted to produce a unique numericcode. The lottery transaction entry added in step S15 is then updatedagain by storing the encrypted authentication code in the appropriatefield of the record (see FIG. 6). The use of cryptographic processorsand encryption algorithms are well known to those skilled in the art ofcryptography. For reference, one of ordinary skill in the art may referto Bruce Schneier, Applied Cryptography, Protocols, Algorithms andSource Code Inc., (2nd Edition, John Wiley & Sons, Inc., 1996).

[0072] The lottery data processing system 60 then transmits the lotteryticket numbers and the encrypted authentication code to the POScontroller 20 initiating the lottery ticket transaction in step S19.

[0073] This authentication code provides an added level of security andprotection for the purchase of the lottery ticket. Should the databasewithin the lottery data processing system 60 be corrupted, all theinformation printed on the store receipt lottery ticket can still beverified by any other device capable of decrypting the authenticationcode.

[0074] Each of the steps S13-S19 described above is executed by the CPU61, which carries out these steps by executing computer programinstructions stored in the data storage device 68. The communicationwith the POS controller 20 takes place via the communication port 65 andthe data network interface 71.

[0075] In an alternative embodiment, additional information may betransmitted from the POS controller 20 to the lottery data processingsystem 60. This could include, as described above, customer-selectedlottery numbers instead of the random “quick-pick” lottery numbersgenerated by the lottery data processing system 60. In this situation,the lottery data processing system 60 would store the customer-selectedlottery numbers in the lottery ticket database 68 a. An encryptedauthentication code would be generated accordingly based on thecustomer-selected lottery numbers. The lottery data processing system 60would then send the encrypted authentication code and authorization tocomplete the lottery transaction to the POS controller 20.

[0076]FIG. 12 is a flow chart depicting the telephone authenticationprocess. The process starts when a customer dials the telephone number87 printed on the sales receipt 80, as shown in FIG. 9, in step S20. Bydialing the telephone number 87, the customer is connected to thecustomer assistance IVRU 75, as shown in FIG. 1. This unit, viapre-recorded voice messages, prompts the customer to enter the encryptedauthentication code 88 printed on the sales receipt 80 using the keys onthe telephone in step S21. In step S22, the customer assistance IVRU 75communicates this information to the lottery data processing system 60via the IVRU interface 74, shown in FIG. 4.

[0077] In step S23, the lottery data processing system 60 searches thecryptographic code field F12 in the lottery ticket database 68 a to findan entry that matches the information provided from the IVRU 75. If nomatch is found, the lottery data processing system 60 communicates tothe IVRU 75 that the encrypted authentication code provided by thecustomer is not valid. The IVRU 75 then prompts the customer to re-enterthe encrypted authentication code. After a predetermined number offailed attempts to correctly enter a valid code, the call is terminated,as shown in step S24.

[0078] If a matching entry is found, the lottery data processing system60 decrypts the encrypted authentication code. The decrypted informationis then communicated to the customer assistance IVRU 75 in step S25.Based on this information, the customer assistance IVRU 75 transmits avoice message to the customer providing all the decrypted information(i.e. lottery ticket number, time and date of purchase, etc.). Thecustomer assistance IVRU 75 creates the voice message by combiningpre-recorded voice messages stored therein.

[0079] A winning lottery ticket may be redeemed at one of the POSterminals 30 or at any conventional lottery terminal. To redeem thewinning lottery ticket at one of the POS terminals 30, the POS terminaloperator initiates a lottery ticket verification process by actuating apre-programmed input designator via input device 37 associated with thePOS terminal 30. The POS operator then enters the encryptedauthentication code printed on the lottery ticket into the POS terminal30 via the input device 37. This information is transmitted to thelottery data processing system 60 via the POS controller 20. The lotterydata processing system 60 decrypts this information and accesses thelottery ticket database 68 a and the winning lottery ticket numberdatabase 68 b. The lottery data processing system 60 then determineswhether the lottery ticket is a winning lottery ticket based on theinformation contained in the respective databases.

[0080] This determination (along with other information as needed) isthen communicated back to the POS terminal 30 via the POS controller 20.Other types of information that may be included in this communicationare, for example, the winning prize amount, the fractional prize amount,and whether or not there was a jackpot winning ticket.

[0081] In an alternative embodiment, the random “quick-pick” lotterynumbers used for a lottery ticket transaction may be generated by thePOS controller 20. These lottery numbers would then be transmitted tothe lottery data processing system 60 as described above.

[0082] There are thus provided new and improved systems and methods forselling lottery tickets at point-of-sale locations in stores. Theinvention uses the same equipment provided for processing conventionalstore sales of merchandise and/or services to process lottery ticketsales.

[0083] The dual utility of the sales equipment makes the inventioncost-effective for merchants. The systems and methods provided permitspeedy and efficient purchasing of lottery tickets while making routinepurchases of other goods, thus encouraging impulse purchasing of lotterytickets without delaying the regular flow of the point-of-sale checkoutline. Further, the invention enables the quick and efficient sale offractional lottery tickets with what would otherwise be customer change,again encouraging impulse purchases, thereby increasing the market forlottery tickets.

[0084] The present invention further provides systems and methodswhereby an easy to print, easy to read, sales receipt is printedcontaining both the sales of goods/services and lottery ticketinformation. The ticket includes authenticating information, includingat least one authenticating code and a customer service telephonenumber, which the customer can use to verify his lottery numbers withthe lottery authority.

[0085] While the present invention has been described above in terms ofspecific embodiments, it is to be understood that the invention is notintended to be confined or limited to the embodiments disclosed herein.On the contrary, the present invention is intended to cover all methods,structures and modifications thereof included within the spirit andscope of the appended claims.

What is claimed is:
 1. A system comprising: a lottery data processingsystem; a controller including a storage device storing merchandiseinformation, said controller adapted to receive lottery information fromsaid lottery data processing system; at least one POS terminal connectedto said controller, for performing merchandise transactions and lotterytransactions in accordance with the received lottery information; andsaid POS terminal including a recorder for recording on a recordingmedium the merchandise and lottery information.
 2. The system accordingto claim 1, wherein said controller communicates in substantiallyreal-time with said lottery data processing system.
 3. The systemaccording to claim 1, wherein the storage device stores lotteryinformation received from said lottery data processing system thatincludes randomly selected lottery ticket numbers.
 4. The systemaccording to claim 2, wherein said POS terminal is adapted for input ofcustomer-selected lottery numbers, said controller is adapted totransmit the customer-selected lottery numbers to said lottery dataprocessing system, and said controller is adapted to receive from saidlottery data processing system an encrypted authentication code andauthorization to perform the lottery transaction.
 5. The systemaccording to claim 1, wherein said controller is a store network server.6. A method for performing a lottery transaction, comprising the stepsof: initiating the lottery transaction at a POS terminal adapted toperform both lottery transactions and merchandise transactions;communicating from the POS terminal to a POS controller, operativelyconnected to said POS terminal, that the lottery transaction has beeninitiated; establishing communication between the POS controller and alottery data processing system adapted to communicate with the POScontroller; requesting lottery information be transmitted from thelottery data processing system to the POS controller; generating thelottery information in the lottery data processing system; transmittingthe lottery information from the lottery data processing system to thePOS terminal via the POS controller; and outputting the lotteryinformation on a recording medium by the POS terminal.
 7. The methodaccording to claim 6, wherein said generating step comprises generatinglottery information that includes randomly selected lottery numbers andan encrypted authentication code.
 8. The method according to claim 6,wherein said outputting step comprises outputting a recording mediumcomprising a sales receipt having information relating to the lotterytransaction and a merchandise transaction.
 9. A method according toclaim 6, further comprising the steps of: inputting customer-selectedlottery numbers to the POS terminal; sending the customer-selectedlottery numbers to the lottery data processing system; and wherein saidgenerating step comprises generating lottery information that includesan authorization to complete the lottery transaction using thecustomer-selected lottery numbers and an encrypted authentication coderelated to the customer-selected lottery numbers.
 10. A method accordingto claim 6 further comprising the steps of: inputting into the POSterminal an indication of a percentage of a full price lottery ticket;sending the indication to the lottery data processing system; andwherein said generating step comprises generating lottery informationthat includes an authorization for a fractional lottery tickettransaction.
 11. A lottery data processing system comprising: a lotterycontroller including a CPU and a memory operatively connected to saidCPU; said lottery controller adapted to communicate with at least oneremote controller that includes a storage device for storing merchandiseinformation, said lottery controller adapted to receive a request forlottery information from said remote controller and to transmit, inresponse, the lottery information to said remote controller; and saidmemory in said lottery controller containing a program, adapted to beexecuted by said CPU, for processing the request for the lotteryinformation, generating the requested lottery information, andmaintaining a database within said memory to store the requested lotteryinformation.
 12. The system according to claim 11, wherein said programin said memory is adapted to generate lottery information that includesat least one group of randomly selected lottery numbers and an encryptedauthentication code for transmittal to said remote controller.
 13. Thesystem according to claim 11, wherein said lottery controller is adaptedto receive from said remote controller at least one group ofcustomer-selected lottery numbers.
 14. The system according to claim 13,wherein said program in said memory is adapted to generate lotteryinformation that includes an authorization to complete a lotterytransaction related to the request for the lottery information and anencrypted authentication code related to the group of customer-selectedlottery numbers for transmittal to said remote controller.
 15. Thesystem according to claim 12, further comprising: an IVRU operativelyconnected to said lottery controller and to a PSTN; wherein said lotterycontroller is adapted to receive an alphanumeric code from said PSTN viasaid IVRU; and said program in said memory is further adapted to searchsaid database within said memory to find a stored encryptedauthentication code that matches the alphanumeric code, and if a matchis found, decrypt the alphanumeric code, and send a first message tosaid PSTN via said TVRU, otherwise send a second message to said PSTNvia said IVRU.
 16. The system according to claim 14, further comprising:an IVRU operatively connected to said lottery network controller and toa PSTN; wherein said lottery controller is adapted to receive analphanumeric code from said PSTN via said IVRU; and said program in saidmemory is further adapted to search said database within said memory tofind a stored encrypted authentication code that matches thealphanumeric code, and if a match is found, decrypt the alphanumericcode, and send a first message to said PSTN via said IVRU, otherwisesend a second message to said PSTN via said IVRU.
 17. The systemaccording to claim 15, wherein the first message includes informationbased on the decrypted alphanumeric code.
 18. The system according toclaim 15, wherein the second message includes an indication that nomatch was found.
 19. The system according to claim 15, wherein the firstmessage comprises an indication as to whether the alphanumeric code isfrom a winning lottery ticket.
 20. A method for processing a request forlottery information using a lottery controller including a CPU and amemory operatively connected to said CPU, wherein the memory contains aprogram, adapted to be executed by said CPU, for processing lotteryinformation requests, said method comprising the steps of: receiving arequest for lottery information from a data processing system adapted toperform lottery ticket transactions and merchandise transactions;generating lottery information based on the request for lotteryinformation; storing the lottery information in the memory; andtransmitting the lottery information to the data processing systemadapted to perform lottery ticket transactions and merchandisetransactions.
 21. A method for processing a lottery ticket request,comprising the steps of: receiving a request for at least one lotteryticket; generating randomly selected numbers to be used for the lotteryticket; generating an authentication code comprising the randomlyselected numbers; encrypting the authentication code; storing therandomly selected numbers and the encrypted authentication code in astorage device; and outputting the randomly selected numbers and theencrypted authentication code.
 22. A method according to claim 21,wherein the request in said receiving step is for a fractional lotteryticket.
 23. Computer executable process steps, stored on a computerreadable medium, for processing lottery ticket transactions, comprising:a step to receive a lottery ticket request; a step to generate randomlyselected lottery numbers; a step to generate an authentication codebased upon the randomly selected lottery numbers; a step to encrypt theauthentication code; a step to store the randomly selected lotterynumbers and the encrypted authentication code in a storage device; and astep to output the randomly selected lottery numbers and the encryptedauthentication code.
 24. Computer executable process steps according toclaim 23, wherein the lottery ticket request in said step to receive isfor a fractional lottery ticket.
 25. A system for performing lotteryticket transactions and merchandise transactions, comprising: a POScontroller including a storage device storing merchandise informationand lottery information; said POS controller adapted to communicate witha lottery data processing system; said POS controller further adapted totransmit a request for lottery information to said lottery dataprocessing system and to receive, in response, the requested lotteryinformation from said lottery data processing system; at least one POSterminal, operatively connected to said POS controller, for performingmerchandise transactions and lottery transactions in accordance with thereceived lottery information; and a recorder connected to said POSterminal for issuing a receipt for the merchandise and lotterytransactions, said receipt comprising the lottery information from saidlottery data processing system.
 26. A method for performing lotteryticket transactions and merchandise transactions utilizing a POSterminal operatively connected to a POS controller including a storagedevice storing merchandise information, comprising the steps of:initiating at the POS terminal a transaction for a plurality of items tobe purchased, including a request to purchase at least one lotteryticket; inputting to the POS terminal a request for lottery ticketinformation; transmitting to the POS controller the request for lotteryticket information; receiving at the POS terminal from the POScontroller the requested lottery ticket information; and recording on arecording medium the lottery ticket information and the merchandisetransaction.
 27. A method according to claim 26, further comprising thestep of storing the requested lottery ticket information in the storagedevice of the POS controller.
 28. A data processing system, comprising:a POS controller including a CPU and a storage device operativelyconnected to said CPU; said POS controller adapted to receive from atleast one POS terminal, capable of performing lottery transactions andmerchandise transactions, a request for lottery information; said POScontroller further adapted to communicate the request for lotteryinformation to a lottery data processing system that is capable ofgenerating lottery information, and to receive, in response, therequested lottery information; and said storage device in said POScontroller containing a program, adapted to be executed by said CPU, forprocessing the request for the lottery information from said POSterminal.
 29. A method for processing lottery ticket requests using aPOS controller including a CPU and a storage device operativelyconnected to said CPU and containing a program, adapted to be executedby said CPU, for processing lottery ticket requests, comprising thesteps of: receiving a request for lottery information from a POSterminal performing lottery transactions and merchandise transactions;transmitting the request to a lottery data processing system capable ofgenerating lottery information based on the request for lotteryinformation; receiving the lottery information from the lottery dataprocessing system; and sending the lottery information to the POSterminal.
 30. A transaction processing device, comprising: a POSterminal adapted to perform lottery transactions and merchandisetransactions; said POS terminal adapted to communicate with a POScontroller; said POS terminal adapted to transmit a request for lotteryinformation to said POS controller and to receive the requested lotteryticket information from said POS controller; and said POS terminalincluding a recorder for recording on a recording medium the merchandiseand lottery transactions.
 31. A method for performing lottery tickettransactions and merchandise transactions utilizing a POS terminaloperatively connected to a POS controller that is adapted to communicatewith a lottery data processing system, comprising the steps of:initiating at the POS terminal a transaction for a plurality of items tobe purchased, including a request to purchase at least one lotteryticket; inputting to the POS terminal a request for lottery information;receiving at the POS terminal lottery information including an encryptedauthentication code; and recording on a recording medium the lotteryinformation and the merchandise transaction.
 32. The method according toclaim 31, wherein said inputting step comprises inputting a request forlottery information that includes randomly selected lottery numbers, andsaid receiving step comprises receiving the randomly selected lotterynumbers and the encrypted authentication code.
 33. The method accordingto claim 31, wherein said inputting step comprises requesting thatspecific customer-selected lottery numbers be used as at least a part ofthe lottery information being requested.
 34. The method according toclaim 31, wherein the request in said initiating step is for a factionallottery ticket.
 35. The method according to claim 34, wherein thereceived lottery information includes an authorization to perform afractional lottery ticket transaction.
 36. A method of purchasing alottery ticket, comprising: requesting the purchase of at least onelottery ticket and at least one item of merchandise; receiving arecording medium constituting the lottery ticket and containinginformation concerning the purchase of the item of merchandise.
 37. Amethod according to claim 36, wherein the lottery ticket requested insaid requesting step is a fractional lottery ticket.
 38. A method ofpurchasing a lottery ticket comprising: requesting the purchase of anitem of merchandise; tendering an amount of money for the purchase, inexcess of the purchase price; directing that the amount of money for thepurchase in excess of the purchase price be applied to the purchase of afractional value lottery ticket; and receiving a recording mediumconstituting the fractional value lottery ticket and containinginformation concerning the purchase of the item of merchandise.
 39. Amethod for authenticating a lottery ticket using a lottery centralcontroller including a storage device, comprising the steps of:receiving first information related to the lottery ticket; determiningwhether the first information is equivalent to second information storedin the storage device, where the second information relates to aplurality of authorized lottery tickets; if no equivalent is found,outputting a first message indicating that no match was found; if anequivalent is found, performing a decryption operation on the firstinformation; and outputting a second message based on the decryptionoperation.
 40. The method according to claim 39, wherein the receivedfirst information comprises an encrypted authentication code.
 41. Themethod according to claim 39, wherein said receiving step comprisesreceiving the first information via an IVRU operatively connected to aPSTN.
 42. The method according to claim 39, wherein said receiving stepcomprises receiving the first information from another data processingsystem.
 43. The method according to claim 39, wherein the second messagecomprises a report as to whether the lottery ticket is a winning lotteryticket.
 44. The method according to claim 40, wherein the decryptionoperation comprises decrypting the encrypted authentication code, andthe second message comprises information based on the decryptedauthentication code.
 45. A receipt, comprising a recording medium,recorded thereon lottery ticket information, merchandise transactioninformation and an encrypted authentication code.
 46. The receiptaccording to claim 45, wherein the lottery ticket information comprisesa fractional lottery ticket.
 47. A transaction processing system,comprising: a POS terminal adapted to perform lottery tickettransactions and merchandise transactions; an input device associatedwith said POS terminal for inputting information to said POS terminalrelated to at least one item to be purchased and an amount of moneytendered to pay for the item; said POS terminal adapted to calculate anamount of change based on the amount of money tendered to pay for theitem; said input device including an actuable member for causing saidPOS terminal to perform a lottery ticket transaction by applying theamount of change toward purchase of an amount of lottery tickets equalin value to the calculated amount of change; and said POS terminalincluding a recorder for recording on a recording medium the merchandisetransaction and the amount of lottery tickets purchased with thecalculated amount of change.
 48. The system according to claim 47, wherethe amount of lottery tickets purchased includes a fractional lotteryticket.